News

Arthan Finance Secures Rs 50 Crore Funding from Incofin and Dell Foundation

• ByStartupStory     |    June 10, 2024

Arthan Finance, a non-banking financial company (NBFC) dedicated to providing loans to self-employed nano and micro entrepreneurs, has successfully secured Rs 50 crore in Series B funding. The funding comes from Incofin India Progress Fund and the Michael & Susan Dell Foundation, marking a significant milestone for the company.

The newly acquired funds will be utilized to expand Arthan Finance’s assets under management, extend its geographic reach, and enhance its technological capabilities with investments in artificial intelligence (AI) and machine learning (ML)-based underwriting systems.

“This funding is crucial for our next phase of growth. We are committed to enhancing our technological capabilities and expanding our reach to serve more micro and small enterprises in underserved regions. Our partnership with esteemed investors such as Incofin and the Michael & Susan Dell Foundation reinforces our mission to drive financial inclusion in India,” said Kunal Mehta, Founder and Director of Arthan Finance, in a statement.

Arthan Finance currently operates in the states of Maharashtra, Odisha, Andhra Pradesh, and Telangana. The company provides growth capital to self-employed nano and micro enterprises located in small towns. To date, Arthan Finance has disbursed over Rs 500 crore to more than 20,000 borrowers, with loan amounts ranging from Rs 2,000 to Rs 20 lakh.

The company’s use of AI and ML-based underwriting systems ensures efficient risk assessment and loan disbursement processes, targeting an underbanked population of more than 11 million nano enterprises with an estimated credit demand exceeding $25 billion.

“The small businesses that Arthan is empowering represent a big opportunity for the future of India,” said Geeta Goel, India Country Director at the Michael & Susan Dell Foundation.

Follow Startup Story